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Spending vs. Reality: Why the US Is on a Path to Financial Ruin, and and TSLA Earnings After the Close
The U.S. just hit a new high in interest payments on debt. Where exactly does the money come from? And maybe more importantly, now that interest payments exceed defense spending, where does the money go?
We also have Tesla (TSLA) earnings after the close today...
Come join me as we dive in and see what’s moving!
Plus, as always, we have stocks popping and dropping so come find out what is moving this morning as I look for stocks and do some live premarket analysis on SPX, SPY, NDX, QQQ, Russell, IWM and other stocks that are potential plays for the day.
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Spending vs. Reality: Why the US Is on a Path to Financial Ruin
The U.S. government has become a debt-creating machine — and it's not slowing down.
Every year, we’re adding more to our national debt because we’re spending more than we bring in. This isn't complicated… It's basic math.
The problem is, we're not just outspending in one area — it’s across the board, from entitlements to defense to interest on the debt itself. When you break it down, it’s like a household budget gone wrong — we’re borrowing to pay bills without making more to cover what we owe.
Look at the total receipts versus outlays….
The gap is enormous. Every time we expand the deficit, we’re just adding more fuel to a fire that’s been burning for decades. Fixing this should be simple — cut spending and create a surplus. But no one wants to do that because it’s politically painful.
People don't want to hear about cutting Social Security or Medicare, but the reality is, these entitlements make up a massive chunk of where the money goes.
The argument I often hear is, “Why don’t we just tax corporations more? Make them pay their fair share.”
But here’s the truth — taxing corporations is just taxing consumers.
When businesses are hit with higher taxes, they don’t just absorb those costs — they pass them along to you and me in the form of higher prices. That’s how inflation kicks in.
So, raising taxes on corporations isn’t the magic bullet everyone thinks it is.
Where does the money actually go?
Sure, there’s defense, health care and education — but the real problem is how we handle entitlements and debt servicing. The interest we’re paying on the national debt is ballooning, and we’re not making enough to even cover that in the future if this trend continues.
We’re on a trajectory where we’ll soon be borrowing just to pay off the interest — a financial death spiral.
The solution is painful but clear: We need to cut spending.
It's not about raising taxes or finding new revenue streams — it's about living within our means. Until we can stop overspending, the U.S. will continue down this unsustainable path.
Everyone is waiting for a miracle fix, but there's no easy way out. It's going to hurt, but cutting spending and creating a surplus is the only real solution.
Today’s Daily Chart Setup: WD-40 (WDFC)
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